Naomi Simson OAM discusses key business strategies for success, emphasising great models, solving customer problems, and founder responsibilities
Building a successful business takes more than a compelling idea, strong leadership or access to capital.
According to Naomi Simson OAM, co-founder of Big Red Group and former Shark Tank investor, sustainable growth starts with a business model that solves a genuine customer problem.
Speaking on The Founders Method, hosted by Jesse Leeworthy and Jonathan Byrt, Simson shared insights from her experience investing in and building businesses, highlighting why founders must understand customer demand, cash flow and operational limitations before prioritising expansion.
Simson argued that founders should focus on the fundamentals of their business before pursuing rapid growth.
While leadership and technology can play important roles, neither can compensate for a model that fails to deliver something customers genuinely need and are willing to pay for.
Customer problems should drive innovation
For Simson, successful innovation begins with understanding the customer rather than adopting technology for its own sake.
She pointed to Netflix as an example of a business that addressed a clear customer frustration.
By eliminating the inconvenience of late fees associated with traditional video rental services, the company demonstrated how identifying an everyday problem could help reshape an industry.
The lesson for founders is to build solutions around customer needs, using technology as an enabler rather than treating it as the product’s primary selling point.
This approach is particularly relevant as businesses increasingly incorporate artificial intelligence and other emerging technologies into their operations.
Without a clear understanding of the problem being solved, new technology risks adding complexity without creating meaningful value.
Why funding cannot replace a sustainable business model
Drawing on her experience with Shark Tank, Simson highlighted a common weakness among businesses seeking investment: the absence of a sustainable model for generating revenue.
She noted that attracting customers through advertising and external capital does not necessarily demonstrate that a business can operate profitably over the long term.
Founders need to establish whether customers will pay for their offering and whether the economics of the business can support continued growth.
Cash flow, customer acquisition costs and operational constraints all play a role in determining whether expansion is viable.
The distinction is important for entrepreneurs preparing to approach investors.
Capital can accelerate a business with a proven model, but it cannot guarantee that the underlying proposition will work.
Three priorities for scaling a business
Simson identified three areas founders should focus on consistently to support sustainable growth.
The first is distribution and sales. Businesses need effective ways to reach customers, communicate their value and convert demand into revenue.
Growth requires more than developing a product; it requires a repeatable process for getting that product into the hands of the right people.
The second is understanding customers. Founders must continue learning about their customers’ needs, expectations and aspirations.
These insights can inform product development, improve the customer experience and help businesses adapt as markets change.
The third is building the right team. As a company grows, its success increasingly depends on people who understand and support its core values and long term vision.
A team aligned around the business’s purpose can help maintain direction while the organisation becomes more complex.
Building for long term success
Simson’s message reinforces a central principle of entrepreneurship: sustainable businesses are built by solving real problems for paying customers, not simply by securing investment or adopting the latest technology.
For founders navigating an increasingly competitive business environment, the challenge is to balance ambition with commercial discipline.
Establishing a viable model, understanding customer demand and maintaining control of cash flow can provide a stronger foundation for expansion.
For more information, visit MemoBottle.
Also visit Naomi Simson’s podcast
